The Minnesota Department of Revenue released this news release on August 4.

With a new school year on the horizon, parents and caregivers are reminded to save receipts on school supply purchases in order to claim valuable K-12 tax benefits when filing their taxes next year.

“Purchasing school supplies is an investment that nearly every parent or caregiver in Minnesota makes on a yearly basis,” said Revenue Commissioner Robert Doty. “Saving receipts from these purchases, including distance learning needs, and claiming the K-12 Education Credit or Subtraction will help save money or increase a refund when it comes time to file taxes.”

Two tax benefits can help Minnesota families pay expenses related to their child’s education: the refundable K-12 Education Credit (income limits apply) and the K-12 Education Subtraction (no income limits).

These programs reduce the tax parents pay and could deliver a larger refund when filing a Minnesota income tax return. To qualify, the purchases must be for educational services or required materials. The child must be attending kindergarten through 12th grade at a public, private, or home school and meet other qualifications.

Last year, more than 33,000 families received the K-12 Education Credit and saved an average of $250. Nearly 190,000 families received the K-12 Education Subtraction.

Save those receipts

Remember to save your receipts to claim the credit or subtraction. Most expenses for educational instruction or materials qualify, including:

  • Paper
  • Pens and notebooks
  • Textbooks
  • Rental or purchases of educational equipment such as musical instruments
  • Computer hardware (hotspots, modems, and routers) and educational software (up to $200 for the subtraction and $200 for the credit) *
  • After-school tutoring and educational summer camps taught by a qualified instructor

*Fees for internet service do not qualify

Household Income for the K-12 Education Credit

Number of qualifying children in K-12 Household income must be less than
1 or 2 $37,500
3 $39,500
4 or more Add $2,000 for each additional child

Taxpayers who are not required to file an income tax return must do so in order to claim a refund for any eligible education credit.

K-12 Education Subtraction

There are no income limits to qualify for the education subtraction. Most parents qualify. Parents can claim the K-12 Subtraction for tuition paid to private schools or college courses used to satisfy high school graduation requirements.

Visit with your tax expert at CDS to discuss your situation.